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Dollar Weaker on Consumer Confidence Miss28 December 2018 by Dave Evans

Morning Report: 07.00 London

The dollar index is pulling back further from the highs after US Consumer Confidence came in well below estimates yesterday.

The dollar pairs are on the rise led by the euro, which is challenging the December highs. The GBP/USD continues to lag however, helping the EUR/GBP to make further gains. The AUD/USD is rising after breaking fresh lows for 2018 yesterday.

The USD/CAD is pulling back slightly after making fresh 2018 highs yesterday. The USD/CHF is challenging the late Winter trading range, with a test of the 0.9850 lows.

Yen pairs are on the back foot as traders seek out the yen’s safety amid stock market turbulence. The USD/JPY is back below 110.50 and challenging the December lows.

The EUR/JPY is outperforming, but remains within touching distance of the lows, while the GBP/JPY is setting new 2018 lows. The AUD/JPY is following suit and eyeing fresh 2018 lows.

Coming up today

At 08.00, we have KOF Economic Barometer

US Chicago PMI is at 14.45.

Trade Idea

The pound remains under pressure, despite a Christmas impasse in Brexit negotiations. Amid dire warnings over the consequences of a hard Brexit, the pound’s weakness is likely to remain until the new year. A last minute deal or ‘reinterpretation’ is not unlikely.

Dollar Weaker on Consumer Confidence Miss

Until then, a good way to play this is a LOWER trade predicting that the GBP/JPY will close below 139.00 in 14 days for a potential return of 150%.

Dollar Weaker on Consumer Confidence Miss